ALLEGION REPORTS SECOND-QUARTER 2017 FINANCIAL RESULTS
Second-quarter 2017 net earnings per share (EPS) of $1.10, compared with 2016 EPS of $0.98; Adjusted 2017 EPS of $1.11, up 12.1 percent compared with 2016 adjusted EPS of $0.99, attributable to strong operational performance
Second-quarter 2017 revenue of $627 million, up 7.2 percent compared to 2016, up 6.2 percent on an organic basis
Second-quarter 2017 operating margin of 21.4 percent, compared with 2016 operating margin of 21.3 percent; Adjusted operating margin of 21.7 percent, improved 20 basis points compared with 2016 adjusted operating margin of 21.5 percent
Raising guidance for 2017 full-year revenue and raising full-year adjusted EPS outlook; Full-year 2017 reported revenue growth of 6.5 to 7.5 percent with organic revenue growth of 6 to 7 percent; Full-year 2017 EPS guidance of $3.55 to $3.72 and $3.65 to $3.80 per share on an adjusted basis
DUBLIN (July 27, 2017) - Allegion plc (NYSE: ALLE), a leading global provider of security products and solutions, today reported second-quarter 2017 net revenues of $627 million and net earnings of $105.5 million, or $1.10 per share. Excluding charges related to restructuring and acquisitions, adjusted net earnings were $106.8 million, or $1.11 per share, up 12.1 percent when compared with second-quarter 2016 adjusted EPS of $0.99.
Second-quarter net revenues increased 7.2 percent, when compared to the prior year period (up 6.2 percent on an organic basis). Reported revenues reflect solid organic growth and contribution from acquisitions that were partially offset by foreign currency.
“Allegion delivered another strong quarter as evidenced by the overall and organic revenue growth rates across all regions,” said David D. Petratis, Allegion chairman, president and CEO. “The Americas continued its momentum, delivering another solid quarter of above-market growth, and EMEIA saw its best organic growth quarter since our spin-off from Ingersoll-Rand.”
The Americas segment revenue increased 7.4 percent (up 6.1 percent on an organic basis). The continued strength in revenue growth was driven by favorable price, low-double digit organic growth in residential markets, and solid performance in non-residential markets related to channel initiatives and new products. Revenues from acquisitions, which more than offset the impact of unfavorable foreign currency, also added to overall growth. Revenue was also favorably impacted from timing of orders in the second quarter of 2017, which mostly offset the tough comparable due to an ERP implementation the prior year.
The EMEIA segment revenues were up 6.3 percent both on a reported and organic basis, reflecting strong growth in the portable security business and solid pricing in the quarter. The contributions from acquisitions offset the impact of unfavorable currency.
The Asia Pacific segment revenues increased 9 percent, when compared to the prior year period (up 7.8 percent on an organic basis). Favorable contributions from acquisitions along with strong growth in electronic locks drove the revenue growth. Foreign currency had minimal impact during the quarter.
Second-quarter 2017 operating income was $134.1 million, an increase of $9.8 million or 7.9 percent over 2016. Adjusted operating income in second-quarter 2017 was $136 million, representing an increase of $10.3 million or 8.2 percent compared to 2016.
Second-quarter 2017 operating margin was 21.4 percent, compared with 21.3 percent in 2016. The adjusted operating margin in second-quarter 2017 was 21.7 percent, compared with 21.5 percent in 2016. The 20-basis-point improvement in adjusted operating margin was driven by strong price performance, volume leverage and productivity, which more than offset unfavorable product mix, increased investments and inflation.
“We continue to see margin expansion even while continuing to invest in the business. Those investments are driving above-market growth, which, in turn, is flowing to the bottom line,” Petratis added.
Interest expense for second-quarter 2017 was $16.1 million, down slightly from the $16.5 million for second-quarter 2016.
The following information was filed by Allegion Plc (ALLE) on Thursday, July 27, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.